Jayden and Tiana are saving for their daughter Kiara's college education. Kiara just turned 10 (at t = 0), and she will

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Jayden and Tiana are saving for their daughter Kiara's collegeeducation. Kiara just turned 10 (at t = 0), and she will beentering college 8 years from now (at t = 8). College tuition andexpenses at State U. are currently $16,000 a year, but they areexpected to increase at a rate of 2.5% a year. Kiara shouldgraduate in 4 years--if she takes longer or wants to go to graduateschool, she will be on her own. Tuition and other costs will be dueat the beginning of each school year (at t = 8, 9, 10, and 11).
So far, Jayden and Tiana have accumulated $10,000 in theircollege savings account (at t = 0). Their long-run financial planis to add an additional $4,500 in each of the next 4 years (at t =1, 2, 3, and 4). Then they plan to make 3 equal annualcontributions in each of the following years, t = 5, 6, and 7. Theyexpect their investment account to earn 9%. How large must theannual payments at t = 5, 6, and 7 be to cover Kiara's anticipatedcollege costs?
a. $6,241.36
b. $6,803.08
c. $8,036.66
d. $7,373.08
e. $5,754.83